Sustainable Development Of Small Loan Companies

To promote small and medium enterprises in Chongqing City, the sound development of rural and Chongqing Municipal Government in August 2008 released "small loan company pilot Chongqing Interim Measures," a citywide pilot micro-credit company officially launched. From then, the smooth progress of the pilot small loan companies, to meet the financial needs of farmers and small and medium enterprises, and effectively promote economic development in Chongqing: a large number of private funds to find a reasonable investment channels, to fill the financial institutions in rural areas in Chongqing service gaps; to Chongqing SMEs to find a reasonable financing; Chongqing ecological system in the diversification of the entire financial situation. The end of 2010, the city has been eligible for the small loans to build 109 companies to achieve a county wide coverage. Plan a registered capital of 9.0 billion,7.3 billion of capital in place (including the establishment of three foreign investors, in place of the registered capital of 37.50 million USD).98 has been opened officially for business 90. Run the following characteristics:substantial increase in loans for the loan of good quality, short deadlines; loans mainly for key industries urgently needed funds, mainly to support small and medium enterprises and individual businesses; repayment of principal due based approach to the phased repayment of principal interest-bearing account for relatively small, diverse way of security, the average loan amount is relatively small, at reasonable interest rates. However, microfinance companies in the rapid development, but faced with financial difficulties:unidentified small loan companies, only no deposit loans, high taxes, profit space is limited, small loan companies can not access banking credit system; small loans companies on the "three rural" enough support, small loan companies related laws and regulations are incomplete, small loan company regulation mechanism is not perfect, small loan companies subject to geographical constraints, "village bank" the development of the future is uncertain. These problems seriously affected the small loan companies in Chongqing sustained and healthy development.By analyzing the plight of small business lending company, the author of the sustainable development of small loan companies empirical study of factors.90 Chongqing small loans based on financial data company, small loan companies to find sustainable development of the factors, based on the purpose of this study, multiple linear regression model using micro-data analysis. Small loan company’s revenue and profit is constraining the sustainable development of small loan companies the most important factor. This paper selected as a result of their variables.Small loan company revenues and profits by more factors. Interest rates, the registered capital, loan size, the number of executives, shareholders are the number of small loans will affect the company’s operating revenues; different levels of economic development in different regions, districts and counties can set up a small loan company, and can not fully meet the local financing needs, the main city and the Wanzhou allowed to set up a number of small areas such as credit companies, a number of local small loan company that the intensity of competition if the number of small loan companies will have revenue and profit impact? This is a very novel idea, the local number of small loan companies the more competition the greater the operating conditions of small loan companies will be greatly affected. Therefore, this article will be a region of small loan companies concerned about the number of variables that the intensity of competition is set to investigate whether competition intensity region’s small loans have significant revenue and profit impact.The empirical results the following conclusions:Competition and inversely proportional to the income of small loan companies, Competition and inversely proportional to the profits of small loan companies. Interest rates, microcredit is proportional to the company’s revenues and profits. Capital and small loan company is inversely proportional to income and profits. The size of loans and small loans directly proportional to the company’s revenues and profits. The number of company executives and small loans is inversely proportional to income and profits. The number of shareholders with small loans is inversely proportional to the company’s revenues and profits.Through the study of literature, data analysis and empirical research on the sustainable development of small loan companies to reach appropriate countermeasures and suggestions.Small loan companies should strengthen internal controls, improve their competitiveness; in the central bank lending rate 0.9 times the range of -4 times the floating rate; accelerate the capital turnover rate and increase the loan size; not blindly pursue high registered capital, as do small; specification management, executive size, number of shareholders as little as possible; to strengthen cooperation with other financial institutions, improve the operational mechanism and the strengthening of internal management, to attract venture capital.Local government should determine the status of financial institutions, loan companies, the abolition of the restriction does not exist only loans, small loan companies allowed to access bank credit information system; reduce taxes, strengthen support for small loan companies, and promote micro-credit companies to support the "three rural", improve the legal system, strengthen supervision, support for small rural banks restructuring loan companies; relaxation of a county can have only a limited small loan companies; continue to implement the company’s existing micro-credit interest rate policy; credit for small loan guarantees, loan companies increase the size of loans.